Journal of Hospitality Financial Management: Volume 18, Issue 2
Loading...
Volume
Number
Issue Date
Journal Title
Journal ISSN
Journal Volume
Articles
2010 – A Year in Review for Hotel Firms
(2010-01-01) Sheel, Atul
How closely is CEO compensation tied to performance? An examination of the U.S. restaurant industry
(2010-01-01) Dalbor, Michael; Oak, Seonghee; Rowe, Toni
The purpose of this research is to assess the elasticity of CEO compensation in the U.S. restaurant industry. Using a sample of 30 restaurant firms for the years 1993 through 2006, we find that a 1% increase in current year firm return yields an increase of approximately .43% for salary, bonus and stock options, .20% for salary and bonus and 2.74% for bonus and options. Mergers do not appear to impact CEO compensation significantly. Our findings are within the range found by many previous researchers.
The Impact of the Recent Recession on U.S. Lodging Firms: An Examination Based on Ratio Analysis
(2010-01-01) Youn, Hyewon; Gu, Zheng
To assess the impact of the recession on the financial performances of the lodging industry, this study examines sample firms’ financial ratios in 2006, the year immediately prior to the recession, to those in 2008, the year during which the recession was in full swing. The findings of this study indicate that both non-gaming hotels and casino hotels experienced deterioration in all five aspects of their financials, namely liquidity, leverage, solvency, efficiency and profitability. To overcome the recession impact and better cope with future recessions, hotel firms should strive to use existing assets to maximize sales revenue and avoid excessive expansions. In addition, both regular hotel firms and casino hotel firms need to move away from heavy debt financing. A prudent and conservative assets growth policy is necessary for them to curb the leverage and increase solvency.
A Revisit to the Impact of Exchange Rates on Tourism Demand: The Case of Italy
(2011-01-01) Quadri, Donna L; Zheng, Tianshu
Currency exchange rates have consistently been used in modeling international tourism demand (Song & Li, 2008). Using the case of Italy, this study reexamines the relationship between exchange rates and international arrivals from a new perspective by quantifying the impact, if any, that the fluctuations of exchange rates, alone, have on international demand from 19 separate nations. While confirming previous research relative to country pairs (Crouch, 1995), the findings of this study suggest that exchange rates do not universally affect international tourism demand indicating exchange rates exhibit disparate levels of significance in determining international arrivals to Italy. In 11 of the 19 nation pairs examined, exchange rates resulted in no significance, contradicting previous studies (Crouch, 1994b) and prevailing assumptions. These findings will help policy makers and practitioners in understanding the impact of exchange rates on Italian tourism and offers direction to researchers on reevaluating the role of exchange rates in developing international tourism demand forecasting models.
A Financial Analysis of Payment Card Industry Compliance Journey of A Hotel: A Case Study
(2010-10-14) Berezina, Katerina; Cobanoglu, Cihan
Payment card transactions have become an essential part of hotels operations. The purpose of this study is to explore the procedure, approximate the cost, and describe the real-life hotel experience of becoming PCI-compliant in order to provide guidelines and approximate expenses for recently opened hotels and for existing ones that are not PCI-compliant. A case study method approach was used. One hotel located in the Northeast part of the U.S. agreed to participate in this study. This is a limited-service, 120-room hotel; a major brand franchisee that is operated by a management company. The data was collected through a structured interview with the general manager of the hotel by the researchers. Findings indicated the cost for being PCI Compliant is not easy to calculate as many of the costs were integrated in typical costs of the hotel such as franchise fee and IT budget. Findings also suggested that the key elements every hotel is required to invest in to become PCI compliant; among them secure PMS/POS systems with firewalls and anti-virus software, and protected Internet networks. There are also some particular procedures (e.g. changing passwords, limiting access to the cardholders’ information, etc.) that a hotel needs to follow: necessary training for employees and potentially monitoring and controlling systems.